Marketing & Strategy Chapter 2

Strategic Planning What is it? What is it? “The managerial process of creating and maintaining a fit between organizational objectives and resources, and the evolving market opportunities” “The managerial process of creating and maintaining a fit between organizational objectives and resources, and the evolving market opportunities” Why is it important? Why is it important?

Strategic Planning & Marketing Planning Planning Market planning Market planning Market plan Market plan Mission Statement Situation Analysis Objectives Marketing Strategy

The Strategic Planning Process Define the Business’ Mission Define the Business’ Mission Conduct a Situation Analysis Conduct a Situation Analysis Establish Marketing Plan Objectives Establish Marketing Plan Objectives Determine Competitive Advantage Determine Competitive Advantage Evaluate Strategic Alternatives Evaluate Strategic Alternatives Describe Target Market Describe Target Market Adjust Marketing Mix Adjust Marketing Mix Follow-up Follow-up

Define the Business’ Mission Mission statement Mission statement What does it do? What does it do? Examples: Examples: Profit v. Nonprofit companies Profit v. Nonprofit companies Three organization levels Three organization levels Corporate Corporate Business unit Business unit Functional Functional

Mission Statements “to organize the world's information and make it universally accessible and useful.” “To bring inspiration and innovation to every athlete in the world..” “We save people money so they can live better.” “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” “To refresh the world...to inspire moments of optimism and happiness...to create value and make a difference.”

Conduct a Situation Analysis Environmental Scanning Environmental Scanning SWOT Analysis SWOT Analysis StrengthsWeaknesses OpportunitiesThreats

Establish Marketing Plan Objectives What are you wanting to accomplish? What are you wanting to accomplish? Marketing objectives Marketing objectives Realistic Realistic Measurable Measurable Time specific Time specific Benchmarked Benchmarked

Determine Competitive Advantage Competitive Advantages Competitive Advantages Three basic types Three basic types Cost leadership Cost leadership Differentiation Differentiation Niche Niche Sustainable competitive advantage Sustainable competitive advantage

Evaluate Strategic Alternatives Market-Product Analysis Market-Product Analysis Market penetration Market penetration Product development Product development Market development Market development Diversification Diversification Source:

Evaluate Strategic Alternatives BCG Analysis BCG Analysis Two dimensions Two dimensions Four classifications Four classifications Cash Cows Cash Cows Stars Stars Question marks Question marks Dogs Dogs Source: ?

Evaluate Strategic Alternatives Four strategies Four strategies Build Build Hold Hold Harvest Harvest Divest Divest Source: Source: cocacolasabco.com

Describe Target Market Market Strategy Market Strategy How can we segment? How can we segment?

Adjust Marketing Mix Product Product Price Price Place Place Promotion Promotion

Following Up Implementation Implementation Evaluation Evaluation Control Control